Tax Articles

The BIR Priority Programs for Year 2023

By Atty. Rodel C. Unciano

The Bureau of Internal Revenue (BIR) has recently issued its priority programs and projects for the calendar year 2023 which intend to ensure efficiency of the BIR’s effort to improve tax administration and generate revenues. I have summarized some significant BIR programs in the pipeline which every taxpayer should be aware of.

On the taxpayer audit and enforcement, the BIR has set to utilize a full range of audit and enforcement to ensure that taxpayers, who
deliberately evade or avoid paying tax, will meet their obligations. To this end, one measure being considered is to emphasize to taxpayers the criminal nature of tax evasion in order to have a maximum deterrent effect on taxpayers.

The Operations Group of the BIR will also enhance the implementation and enforcement of the oplan kandado program, leading to the temporary closure of business establishments under investigation. To my mind, the implementation of oplan kandado should be exercised with extreme caution as closure of a business establishment will not only affect the business entity under investigation but also the people it serves and the people under its employ. Thus, this should be resorted to as last recourse because of its possible impact to the country’s economy.

Also on enforcement, the BIR has set to intensify collection of delinquent accounts through the establishment of accurate inventory and profile of delinquent accounts and through the employment of appropriate summary remedies. While the objective is laudable, the employment of summary remedies should also be exercised carefully because just like the enforcement of oplan kandado, this measure is anti-business if taxpayer’s are not accorded due process.

One good measure being intensified in regard to enforcement is the program on Run After Fake Transactions, in which case, the BIR has set to identify and file civil, criminal and administrative cases against sellers and users of commercial invoices/receipts used to support fake transactions and to evade payment of internal revenue taxes. Likewise, the BIR will suspend or cancel the Certificate of Accreditation of Tax Practitioners and initiate administrative complaints for the suspension or revocation of professional licenses of CPAs engaged in fake transactions.

On taxpayer service program, the BIR is set to deliver efficient, courteous and timely services to encourage taxpayers to file tax returns and pay correct taxes on time. For this purpose, notable measure is the proposed dissemination of information, education and communication materials to taxpayers using social media platforms such as facebook, youtube and twitter.

Also, the BIR is set to intensify external linkages with other government agencies and private institutions relative to the conduct of tax information and awareness campaigns. The BIR has also set to review, streamline, and standardize processes for taxpayer service, compliance on reportorial requirements, update of zonal values, vat refund and taxpayer segmentation. This is consistent with the President’s directives of promoting ease of paying taxes.

On administration and support services, the BIR has set to ensure the highest standards of financial integrity and policies and procedures in the recruitment and promotion processes. One notable measure is the BIR’s proposal to revisit the plantilla of personnel to address the needs of District Offices and the national office, establish a turnaround time for the recruitment process, fill-up non-entry level positions through the promotion of qualified employees and to fill-up entry level positions. Hopefully, this will result to a more speedy processing of transactions in various offices of the BIR.

On transparency and integrity program, the BIR will establish a Quality Management System (QMS) for BIR’s Business Registration Process for both individual and non-individual taxpayers through the adoption of International Organization Standard (ISO) 9001:2015 QMS. It will also standardize reward system and create new awards and incentives for BIR employees.

On digital transformation, the BIR will transform itself into a data-driven organization through a digitally empowered and resilient workforce utilizing reliable, scalable, and robust digital technologies and infrastructure to innovate BIR services and elevate taxpayer service.

Let us all support the programs of the BIR for our own benefit as taxpayers and for the benefit of our country as a whole.